Tuesday, November 11, 2014

BCREA ECONOMICS NOW Canadian Housing Starts - November 10, 2014


New home construction in Canada slowed in October, falling 7 per cent to 183,604 units at a seasonally adjusted annual rate (SAAR).  The six-month trend in Canadian housing starts of 195,707 units SAAR sits slightly in excess of Canadian household growth. 

Housing starts in BC urban centers also declined in October, by 15.5 per cent to 27,570 units SAAR.  On a year-over-year basis, housing starts were down 3 per cent compared to October 2013. Single-detached starts,  were up 13 per cent while multiple units were down 11 per cent compared to this time last year. Year-to-date, total BC housing starts are 5 per cent higher than 2013. 

Looking at census metropolitan areas (CMA) in BC, total starts in the Vancouver CMA fell 20 per cent year-over-year in October as a 27 per cent decline in multiple starts offset a 2 per cent rise in singles. Year-to-date, Vancouver housing starts are up 3 per cent. In the Victoria CMA, new home construction rose 18 per cent year-over-year, with single detached starts leading the way, rising 26 per cent. Year-to-date, housing starts in Victoria are down 17 per cent. Total housing starts in the Kelowna CMA declined 34 per cent year-over-year in October on weaker construction of both single and multiple units.  Year-to-date, housing starts in the Kelowna CMA are up 31 per cent . Housing starts in the Abbotsford-Mission CMA rebounded from a steep decline in September to post a 60 per cent year-over-year gain in October.  Year-to-date, new home construction in the Abbotsford-Mission CMA is down 26 per cent.